"The Board of Management recognized Ken McCall's pivotal contribution to the development and execution of the China strategy," the company said. "And the change of management will not influence TNT's strategies in China."

TNT expects its revenue from express services in China to grow at three to four times the country's economic growth rate over the next five years, Bryan Chan, managing director of TNT's International Express business in China, was recently quoted as saying.

TNT began a new direct service between China and Europe this year with two Boeing 747-400 freighters. It's also developing its door-to-door express delivery service in Asia.

The TNT spokesperson told China Daily the firm plans to complete its acquisition of China's leading freight and parcels transportation operator HOAU Logistics Group by the end of this year.

The acquisition will pave the way for TNT to become one of the largest privately owned transportation networks for freight and parcels in China. HOAU has over 1,000 operating centres in the country serving around 16,000 customers.

"The acquisition will largely help the company to expand its business in China, especially in the smaller cities other than Beijing, Shanghai and Guangzhou, where HOAU has established a sound transportation network and a good relationship with local clients," said Ming Qiao, an analyst with Shanghai-based Huaming Consulting Co Ltd.

TNT expects its China network to expand to more than 100 branches by 2010 and aims to provide its express and direct mail services to 1,000 cities in China.

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